Skate n Surf began operations on 1 June, buying and selling surfboards, skateboards, wetsuits and the protective gear for skateboarding. The structure of the business is that of a sole trader. The business employed a sales assistant during the month who is to be paid fortnightly. Tax is deducted from the employees wages (PAYG withholding tax) and remitted to the Australian Taxation Office (ATO) on a quarterly basis. The business has not registered with the ATO for the goods and services tax (GST) and has elected to use the accrual basis of accounting. Accounting records The business records all transactions in the general journal. These transactions are then posted to the appropriate account(s) in the general ledger and the accounts receivable or accounts payable subsidiary ledgers, where separate accounts are maintained for each customer or supplier. Chart of accounts The chart of accounts for Skate n Surf contains the accounts and account numbers below.

100		Cash at bank
110		Accounts receivable
120		Inventory
130		Prepaid insurance
171		Shop equipment (cost)
172		Accumulated depreciation - shop equipment
200		Accounts payable
210		PAYG withholding payable
220		Superannuation payable
230		Bank loan
300		Capital
310		Drawings
320		Profit or loss summary
400		Sales revenue
410		Sales returns and allowances
420		Discount received
500		Cost of sales
600		Advertising expense
610		Depreciation expense
620		Discount allowed
630		Electricity expense
640		Insurance expense
650		Interest expense
660		Postage and stationery expense
670		Superannuation expense
680		Telephone expense
690		Wages expense

Transactions
June	1		The owner opened a bank account for the business with a deposit of $23,000. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $26,900 and computer equipment for the shop from Computer Wizards for $4,200. These were paid for with a loan of $26,000 from the bank and cheque for $5,100 from the business bank account. The bank loan is repayable over 4 years.
	1		Paid $5,640 for a 1-year insurance policy covering fire, theft, and public liability.
	2		Purchased inventory (skateboards and protective gear) from Excitement Plus for $20,700 on terms on net 30.
	5		Cash purchase of postage stamps and stationery from Australia Post for $370.
	7		Purchased surfboards and wetsuits from Surf Imports for $18,250 on terms of 10/10, n/30.
	8		Paid $1,500 to Local Newspapers for advertising for the shop for the month.
	8		Paid Surf Imports the amount owing to them less the prompt payment discount.
	11		Credit sale to Surfing World of various inventory items for $7,190 (cost of sales $3,660). Terms net 30.
	12		Credit sale to Academy Diving School of 14 wetsuits at a discounted price of $230 each on terms of net 15. Cost of sales $2,700.
	13		Credit sale to Serious Fun of skateboards and protective gear for $4,200 (cost of sales $2,200). This customer was given terms of 5/10, n/30.
	14		Cash sale of a skateboard and protective gear for $400 (cost of sales $230).
	18		Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
	23		Cash sale of inventory to the value of $950 (cost of sales $410).
	24		Issued an adjustment note (credit note) to Academy Diving School for 4 wetsuits at $230 each that was not the size they required. The cost of the wetsuits to us was $400 and they were put back into inventory.
	25		Paid Excitement Plus $5,300 of the amount owing to them.
	26		Credit sale to Serious Fun of skateboards for $7,100 (cost of sales $3,500). Terms 5/10, n/30.
	27		Purchased wetsuits from Surf Imports for $7,700 on terms of 10/10, n/30.
	27		Received and banked a cheque from Academy Diving School for the amount owing by them.
	30		Paid Energy Australia $230 for electricity expenses.
	30		The owner cashed a cheque for $1,800 to pay wages to Scott Walker the sales assistant of $900 less PAYG Withholding of $50, and $950 drawings for himself.

The end of month adjustments are below.

a.	Depreciation on shop equipment for the month is 25% p.a. prime cost (straight line).
b.	One-twelfth of the insurance expired.
c.	Superannuation payable for the month is 10% of the gross wages paid.
d.	Interest charged on the bank loan for the month was $108.

The transactions above have been journalised and posted.

Cash at bank Date Details June 1 Capital 14 Sales revenue 18 Accounts receivable 23 Sales revenue 27 Accounts receivable Debit Date Details 23,000 June 1 Shop equipment (cost) 400 1 Prepaid insurance 3,990 5 Postage and stationery expense 950 8 Advertising expense 2,300 8 Accounts payable 25 Accounts payable 30 Electricity expense 30 Wages expense 30 Drawings No. 100 Credit 5,100 5,640 370 1,500 16,425 5,300 230 850 950 Details Debit Date Details Accounts receivable Date June 11 Sales revenue 12 Sales revenue 13 Sales revenue 26 Sales revenue 7,190 June 18 Cash at bank 3,220 18 Discount allowed 4,200 24 Sales returns and allowances 7,100 27 Cash at bank No. 110 Credit 3,990 210 920 2,300 Details Details Inventory Date June 2 Accounts payable 7 Accounts payable 24 Cost of sales 27 Accounts payable Debit Date 20,700 June 11 Cost of sales 18,250 12 Cost of sales 400 13 Cost of sales 7,700 14 Cost of sales 23 Cost of sales 26 Cost of sales No. 120 Credit 3,660 2,700 2,200 230 410 3,500 Details Debit Date Details 5,640 June 30 Insurance expense No. 130 Credit 470 Prepaid insurance Date June 1 Cash at bank Shop equipment (cost) Date June 1 Bank loan 1 Cash at bank No. 171 Credit Details Date Details Debit 26,000 5,100 Accumulated depreciation - shop equipment Date Details Debit Date Details June 30 Depreciation expense No. 172 Credit 648 Details Details Accounts payable Date June 8 Cash at bank 8 Discount received 25 Cash at bank Debit Date 16,425 June 2 Inventory 1,825 7 Inventory 5,300 27 Inventory No. 200 Credit 20,700 18,250 7,700 PAYG withholding payable Date Details Debit Details Date June 30 Wages expense No. 210 Credit 50 Superannuation payable Date Details Debit Date Details June 30 Superannuation expense No. 220 Credit 89 Bank loan Date Details Debit Date Details June 1 Shop equipment (cost) 30 Interest expense No. 230 Credit 26,000 108 Capital Date Details Debit Details Date June 1 Cash at bank No. 300 Credit 23,000 Drawings Date June 30 Cash at bank No. 310 Credit Details Debit Date Details 950 Sales revenue Date Details Debit Date Details June 11 Accounts receivable 12 Accounts receivable 13 Accounts receivable 14 Cash at bank 23 Cash at bank 26 Accounts receivable No. 400 Credit 7,190 3,220 4,200 400 950 7,100 No. 410 Debit Date Details Credit 920 Sales returns and allowances Date Details June 24 Accounts receivable Discount received Date Details No. 420 Debit Details Date June 8 Accounts payable Credit 1,825 No. 500 Credit Details Details 400 Cost of sales Date June 11 Inventory 12 Inventory 13 Inventory 14 Inventory 23 Inventory 26 Inventory Debit Date 3,660 June 24 Inventory 2,700 2,200 230 410 3,500 Advertising expense Date June 8 Cash at bank No. 600 Credit Details Date Details Debit 1,500 No. 610 Credit Debit Date Details 648 Depreciation expense Date Details June 30 Accumulated depreciation - shop equipment Discount allowed Date Details June 18 Accounts receivable No. 620 Credit Debit Date Details 210 Electricity expense Date June 30 Cash at bank No. 630 Credit Details Debit Date Details 230 Insurance expense Date June 30 Prepaid insurance No. 640 Credit Details Debit Date Details 470 No. 650 Credit Debit Date Details 108 Interest expense Date Details June 30 Bank loan Postage and stationery expense Date Details June 5 Cash at bank No. 660 Credit Debit Details Date 370 No. 670 Credit Superannuation expense Date Details Debit Date Details June 30 Superannuation payable 89 Wages expense Date Details Debit Date Details June 30 Cash at bank 850 30 PAYG withholding payable 50 Prepare an adjusted trial balance. (Note: Enter accounts in ascending account number order. Leave blank any answer fields that do not require an answer.) No. 690 Credit Prepare an adjusted trial balance. (Note: Enter accounts in ascending account number order. Leave blank any answer fields that do not require an answer.) Skate 'n' Surf Adjusted trial balance as at 30 June 20XX Account Debit Credit Account no LOCATORIA CALONIA SALA